LG Energy Solution secures 5 year deal to supply EV batteries to Rivian

Seoul, Nov 8: South Korea's leading battery maker LG Energy Solution (LGES) said on Friday it has clinched a deal to supply electric vehicle batteries to US automotive manufacturer Rivian. Under the deal, LGES will provide Rivian with its advanced 4695 cylindrical batteries, totalling 67 gigawatt hours, for over five years, according to the company.

The company did not disclose further detailed financial terms of the contract, reports Yonhap news agency. LGES said the batteries will be manufactured at the company's U.S. plant in Arizona and will be used in Rivian's R2 sport utility vehicles. The deal with Rivian follows the Korean company's similar battery supply contracts with global carmakers, including Mercedes Benz and Ford.

LGES said its 4695 cylindrical battery cells are gaining popularity thanks to their larger capacity, higher energy efficiency and enhanced safety features amid increasing demand for cylindrical batteries. "Due to the dynamic nature of the current EV market, an increasing number of global automakers are demonstrating a strong preference for a diverse range of battery form factors," said David Kim, CEO of LG Energy Solution.

"This large scale order from Rivian for 4695 batteries marks a key milestone for LG Energy Solution in expanding its client base within the cylindrical battery segment." Meanwhile, LG Uplus, a major South Korean mobile carrier, said on Friday its third quarter net profit was down 13.9 per cent from a year earlier due to an increase in operating costs.

Net profit for three months ended in September came to 134.9 billion won $97.3 million, compared with 156.7 billion won a year ago, the company said in a regulatory filing. Its operating profit decreased 3.2 per cent on year to 246 billion won, while sales rose 6.1 percent to 3.8 trillion won. Despite higher sales, the company said its net profit decreased because of the cost to install a new computer network.